Story Highlights

J.C. Penney stock jumped in after hours trading as word spread that billionaire hedge fund manager George Soros had made an investment in the struggling company.

The stock rose more than 7% on the news of Soros Fund Management's 7.9% stake in Penney. Interim CEO Mike Ullman already tapped the retailer's revolving credit line for financing since former CEO Ron Johnson was ousted earlier this month. The stock closed at $15.24 at the close of regular trading.

Penney experienced a massive drop in sales under Johnson's tenure as he tried to implement a new strategy that got rid of discounts and coupons, a move that confused and alienated customers. Johnson, whose claim to fame includes being at the helm of Apple's successful retail concept, joined Penney in 2011.